‘Embrace online tax management systems’
Minister of Finance and Economic Affairs Sosten Gwengwe has urged cooperation in the drive to digitalise the country’s tax system amid concerns that failure to generate domestic revenue is worsening public debt and undermining development projects.
Speaking at the Malawi University of Business and Applied Sciences (Mubas) where he delivered a public lecture, he said government’s failure to generate revenue creates some resource constraints that undermine the country’s capacity to implement budget lines and development.
Gwengwe said: “Some economists have in the past faulted the government for spending on consumption at the expense of development and investment. But how can the government invest when the funds we have can only cover consumption?
“We have non-negotiable obligations, such as wages and salaries, voluntary pension contributions and interest payments on public debt. The government usually has limited [fiscal space] to invest in other areas.”
In the presentation, the minister said boosting domestic revenue through the digitalisation of tax management systems remains the best option for Malawi to wean itself off donor dependence and contain the country’s debt burden.
Gwengwe said integrating tax systems, increasing the connection between sections of the tax administration and wider government, could boost efficiency in revenue generation.
Mubas economics lecturer Martin Phangaphanga called for cooperation between the academia and revenue collection authorities to ensure that Malawi trains graduates with the right blend of theoretical knowledge and practical experience to drive the digitalisation agenda. Several public figures, including Malawi Revenue Authority commissioner general John Biziwick attended the public lecture, titled “Leveraging on Digitalisation to Boost Domestic Budget Revenue”.
